After a fairly stable corporate reporting season, investors are now setting their sights on the remainder of the new financial year and buckling down for the ‘storm clouds’ of a global recession.
Despite this uncertain outlook, six fund managers at some of Australia’s largest investment firms have given their best stock picks for the years ahead.
These investors all manage funds on a pro bono basis for Future Generation Australia, an investment firm that does not charge fees and donates 1 per cent of its assets to not-for-profit partners. Since 2014, the fund has donated $65 million to various charities which support at-risk youth.
Don’t forget, The Age and The Sydney Morning Herald analyse stocks each Wednesday through our Long and Short of It column.
Eley Griffiths Group – Ben Griffiths
Stock 1: Playside Studios Limited (ASX: PLY)
Playside Studios is a rapidly growing video game developer with an expanding library of self-published games as well as those developed with major international studios like Disney and Pixar.
Stock 2: Estia Health (ASX: EHE)
Estia is one of the largest aged care operators in Australia which has been hit hard by COVID and the Royal Commission. Aged care is one of the last sectors to recover from 2.5 years of COVID disruption and with a lack of new development, we see a favourable demand/supply situation emerging for the industry.
Importantly the new funding regime post the outcome of the Royal Commission is set to be enacted which will provide certainty to the sector for the first time in six years. Smaller operators are struggling with increased compliance, and we expect Estia to use its strong balance sheet to make accretive acquisitions.
At $2 a share you are essentially paying for Estia’s property and getting the operating business for free. We think the share price is worth $3 a share (a 50 per cent upside).
Pro Bono Stock Picks
|Eley Griffiths Group – Ben Griffiths||Playside Studios Limited (ASX: PLY)||Cobram Estate Olives Limited (ASX: CBO)||Diabetes Kids Fund|
|Firetrail Investments – Kyle Macintyre||Resmed (ASX: RMD)||QBE Insurance Group (ASX: QBE)||Mirabel Foundation|
|Paradice Investment Management – Tom Richardson||Qantas Airways (ASX: QAN)||Challenger Limited (ASX: CGF)||FutureGen’s favourites|
|QVG Capital – Tony Waters||HUB24 (ASX: HUB)||Ridley Corporation (ASX: RIC)||Lighthouse Foundation|
|Tribeca Investment Partners – Jun Bei Liu||Treasury Wine Estates (ASX: TWE)||Ramsay Health Care (ASX: RHC)||Raise|
|Wilson Asset Management – Oscar Oberg||AMP (ASX: AMP)||Estia Health (ASX: EHE)||Mirabel Foundation|
- Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.